Commonsense decision on financial reporting

The Government has made a sensible decision not to proceed with a further compliance requirement on private companies, says Business NZ.

The Commerce Minister today announced that non-issuer companies would not be required to file financial statements with the Registrar of Companies.

Business NZ Chief Executive Phil O’Reilly said the proposed move would have been at odds with the rights to commercial confidentiality and personal privacy.

“Making non-issuer companies publicly file their financial information would also have created additional compliance costs in accounting, auditing and reporting.”

The proposal had been promoted in the interests of achieving consistency with Australian law.

But Mr O’Reilly said large numbers of Australian companies are granted exemptions from their law, making it less desirable to seek consistency in this area.